Central bank widens VND/USD trading band

The State Bank of Vietnam (SBV) has widened the trading band of Vietnamese dong/US dollar (VND/USD) from +/- 1 percent to +/-2 percent, applicable from August 12 onwards.

SBV widens VND/USD trading band. (Photo: VNA)

With the average inter-bank VND/USD exchange rate adjusted to 21,673, the ceiling exchange rate is now 22,106 VND/USD and the floor rate is 21,240 VND/USD.

This is the third time this year the SBV has adjusted the average inter-bank VND/USD exchange rate.

Previously, the central bank raised the average inter-bank rate by 1 percent from 21,246 VND/USD to 21,458 VND per USD on January 27 and increased it again to 21,673 VND/USD on May 7 to ensure the VND’s stability following movements in domestic and international financial markets.

The yuan devaluation by 1.9 percent on August 11, the biggest loss in two decades, negatively impacted dozens of Asian currencies, including Vietnam’s./.